Asian session: The euro headed for a third monthly gain against the yen and the dollar

00:05 United Kingdom Gfk Consumer Confidence October -11 -8 -12

00:30 Australia Private Sector Credit, m/m October +0.3% +0.4% +0.5%

00:30 Australia Private Sector Credit, y/y October +3.3% +3.5% +3.5%

05:00 Japan Housing Starts, y/y October +19.4% +5.5% +7.1%

The euro headed for a third monthly gain against the yen and the dollar as investors pared bets for additional easing by the European Central Bank ahead of the region’s inflation data today. Consumer prices in the euro region probably rose 0.8 percent in November from a year ago, according to the median estimate of economists surveyed by Bloomberg News before the European Union statistics office data today. The ECB cut its benchmark interest rate this month after inflation in the currency bloc slowed to a four-year low in October.

The 17-nation euro climbed to a five-year high versus Japan’s currency after a report yesterday showed consumer prices in Germany, Europe’s largest economy, accelerated more than forecast. Data yesterday showed the inflation rate in Germany, calculated using a harmonized European Union method, rose to 1.6 percent this month, more than the 1.3 percent median forecast of analysts polled by Bloomberg.

The yen was set for a fourth monthly decline against the greenback after Japanese government data showed inflation quickened. Japanese consumer prices excluding fresh food rose 0.9 percent in October from a year ago, the most since November 2008, statistics bureau said in Tokyo today.

Australia’s dollar dropped versus all its major peers as the government’s rejection of a planned foreign takeover raised concern about investment flows into the country.

EUR / USD: during the Asian session, the pair rose to $ 1.3620

GBP / USD: during the Asian session, the pair rose to $ 1.6375

USD / JPY: during the Asian session, the pair rose to Y102.60

The US markets return to the fray Friday, although there will only be a half-day session as many market participants look to bridge into the weekend. However, there is a full calendar in Europe, kicking off at 0700GMT with the release of the German October retail sales and third quarter wholesale sales data. French data will cross the wires at 0745GMT, when the October consumer spending and October PPI numbers will be published. At 0800GMT, the Swiss November KOF economic barometer numbers will cross the wires. At 0815GMT, ECB Executive Board member Yves Mersch will deliver a speech on financial market policy, in Frankfurt. Italian November flash HICP numbers will cross the wires at 0900GMT. Euro area data will be released at 1000GMT, when the important November flash HICP data will cross the wires, along with the October unemployment data. At 1300GMT, Bundesbank board member Andreas Dombret will sit on a panel at the SAFE conference on financial market policy, in Frankfurt. Back in Europe, at 1500GMT, Bundesbank Board member Joachim Nagel will take part in a discussion in Frankfurt on "What's up for banks." At 1630GMT, ECB Governing Council member Ignazio Visco speaks at the SAFE conference on financial market policy.